Behavior Finance Explains Dramatic Price Changes in Securities Markets as a Tendency

question 5

True/False

Behavior finance explains dramatic price changes in securities markets as a tendency for investors to "herd."

---

Definitions:

Subliminal Messages

Messages that are designed to pass below the normal limits of perception and are thought to be capable of influencing an individual's thoughts or actions unconsciously.

Post-Hypnotic Suggestions

Instructions given to a person under hypnosis that are intended to be acted upon after they have emerged from the hypnotic state.

Genetic Differences

Variations in the DNA among individuals or populations, contributing to the diversity in physical traits, susceptibilities to diseases, and behavioral tendencies.

Dopamine

A neurotransmitter involved in many functions, including motivation, pleasure, cognition, memory, learning, and fine motor control.